Morning Coffee Pre-Market Wall Street News

Stock Futures Fall as Plan B Fails. Yesterday the House was to vote on Speaker John Boehner (R) tax plan dubbed “Plan B” that would have raised taxes on those making over $1 million a year. But at the last moment Speaker Boehner canceled the vote after it became evident that the proposal would fail. With  President Obama, the Republicans and the Democrats standing firm on their beliefs on taxes and spending cuts, global markets fell as traders became nervous that the U.S. would fall off the fiscal cliff. The House will recess until after Christmas and President Obama is scheduled to leave for Hawaii for the holidays leaving little time when they return to work out a deal.

Upgrades

Brinker (EAT): Sterne Agee raised their rating from Hold to Buy. Pre-market: 31.51 -0.08 (-0.25%)

Downgrades

Allscripts-Misys Healthcare (MDRX): Argus lowered their rating from Buy to Hold. Pre-market: 9.08 -0.06 (-0.66%)

Herbalife (HLF): Argus lowered their rating from Buy to Hold. Pre-market: 33.58 -0.12 (-0.36%)

Nike (NKE): Janney Capital lowered their rating from Buy to Neutral. Pre-market: 102.21 +3.21 (3.24%)

Discover Financial Services (DFS): FBR Capital lowered their rating from Outperform to Market Perform and lowered their target price from $44.00 to $42.00. Pre-market: 37.71 -0.70 (-1.82%)

Coverage Initiated

Yum! Brands (YUM): Wells Fargo initiated coverage with a Market Perform rating. Pre-market: 65.41 -1.08 (-1.62%)

McDonalds (MCD): Wells Fargo initiated coverage with an Outperform rating. Pre-market: 89.22 -0.82 (-0.91%)

Magna Intl (MGA): Guggenheim initiated coverage with a Neutral rating and target price of $48.00.

IBM (IBM): Topeka initiated coverage with a Buyrating and target price of $245.00. Pre-market: 192.33 -2.44 (-1.25%)

Coverage Reiterated/Price Target Changed

Nike (NKE): Canaccord Genuity reiterated their Hold rating and raised their target price from $94.00 to $100.00. Pre-market: 102.21 +3.21 (3.24%)

Earning Reports

Cintas (CTAS): Reported EPS of $0.63 beating estimates by +$0.01. Pre-market: 42.40 -0.39 (-0.91%)

Micron (MU): Reported EPS of -$0.27 missing estimates by -$0.07. Pre-market: 6.47 -0.32 (-4.71%)

Nike (NKE): Reported EPS of $1.14 beating estimates by +$0.14. Pre-market: 102.21 +3.21 (3.24%)

Research In Motion (RIMM): Reported EPS of -$0.22 beating estimates by +$0.13. Pre-market: 102.25 +3.25 (3.28%)

Wallgreen (WAG): Reported EPS of $0.58 missing estimates by -$0.10. Pre-market: 36.85 -0.70 (-1.86%)

Markets: 
Futures at 7:52: Dow -1.24%. S&P -1.35%. Nasdaq -1.25%. Crude -1.09% to $89.15. Gold +0.25 to $1650.

Europe: London -0.68%. Paris -0.45%. Frankfurt -0.65%. 

Asia: Japan -0.99% to 9940. Hong Kong -0.68% to 22506. China -0.69% to 2153. India -1.09% at 19242.